trudi

Paul SOmerville

Chief Financial Officer

2015-16 has been another year of increased activity and connections for the Finance and National Rental Affordability Scheme (NRAS) teams.

Total revenues have increased to more than $32M and it has been pleasing to see greater diversification in revenue sources with growth in Other Income (which includes NRAS incentives, NRAS compliance management fees and development profits).

Total operating grant income growth is flat reflecting the cessation of some programs and the commencement of some new programs. Revenue also includes fair valuation gains and modest growth in rental revenue. Management of expenses within budget remains an ongoing challenge.

Total Comprehensive Income for 2015/16 was $5.9M.

Haven; Home Safe (HHS) has reinvested more than $1.7M back into the organisation in the areas of operating asset renewal (vehicles, IT and other technology), capital works on affordable housing and implementation of new IT systems.

We have continued to build upon our connections with other teams including the joint development of program budgets, responsive financial reporting, and proactively engaging with the organisation in new business development opportunities. Specifically we have worked with operating divisions on property transfer, property redevelopment, new support service and new affordable housing opportunities.

During 2015-16, HHS has been implementing a new integrated financial and housing management system. Our staff have been extensively involved, working with the housing and maintenance programs to make this a reality. Successful implementation of Kypera will mean improved and greater integration and connectivity of the Finance Team with the rest of HHS.

In other system developments, the Finance Team has worked closely with Human Resources to implement new payroll and HR software, Chris21. Chris21 has improved productivity processing payroll, increased staff access to their payroll requirements via a ‘self-serve’ kiosk and provides a platform for HR to improve services.

Incorporated within the Finance Team is the NRAS Compliance Team that manage in excess of 1000 NRAS incentives allocated to dwellings owned by private investors and HHS. The work the team does is an integral part of the service continuum that facilities affordable housing outcomes in the housing market, making an important financial contribution to HHS.

The NRAS Team have built new connections with the owners and a range of commercial property managers who tenancy manage the NRAS dwellings.

At a strategic finance level we have worked with the Board to develop a Financial Headroom Strategy that connects with our Asset Management and Growth Strategies. Together they work to ensure the HHS business model is financially sustainable in the long term.

The Finance Team have reviewed and updated our Treasury Management Policy with the Board and renewed our interest rate hedging arrangements to manage interest rate risks associated with our debt facility.

Through the provision of affordable and transitional housing HHS has provided significant economic benefit to our tenants. The accumulated value of the discount off market rent that HHS tenants enjoyed during 2015-16 was $5.8M.

I would like to thank all of the staff of the Finance and NRAS Teams for their outstanding efforts and commitment. It has been a big year and I appreciate all that you do. Thank you to my fellow Executive for their support and especially to Ken for your continued leadership.